At a Glance

The debt snowball method can help you gain payoff momentum and confidence as you eliminate your debts one by one. You’ll start by paying your smallest debt off first (while still paying minimums on your other debts), the next smallest debt off second, and so on. You can picture each amount paid off as a snowball gaining more and more momentum down a slope.

The debt snowball calculator can help you create a roadmap to achieve debt-free freedom.

In this article, you’ll learn:

What is the debt snowball method?

The debt snowball method is a strategy to reduce debt. It focuses on paying off debts in order of smallest to largest. The name comes from the idea that you gain momentum (like a snowball) as you knock your debts off one at a time. You’ll focus on paying off your smallest debt first while continuing to make minimum payments on your other balances.

Once the smallest balance is paid off, you’ll take the money you were allocating to that debt and put it toward the next smallest balance. The cycle repeats until all debt is paid in full.